Cryptocurrency financial company Galaxy Digital (GLXY) announced a $200 million share buyback program, sending its stock price soaring nearly 18%. As of press time, the stock was trading at $19.76. Management stated that while Q4 earnings showed a single-quarter loss, the company's adjusted gross profit for the full year still reached $426 million, demonstrating a strong balance sheet. Cryptocurrency peers also generally rose on the same day, with Coinbase (COIN) shares rising nearly 13% to close at $165.12. In traditional financial markets, the Dow Jones Industrial Average also climbed to 50,000 points, reflecting overall optimism.
Galaxy Digital announced it would repurchase $200 million worth of shares, causing its stock price to rise.
Galaxy Digital (GLXY) shares rose 17.34% on Friday, closing at $19.76 at the time of writing. This followed the company's board of directors approving a share repurchase program, authorizing the repurchase of up to $200 million worth of Class A common stock over the next 12 months. The company stated that the repurchases could be conducted through the open market, privately negotiated transactions, or other means, including transactions pursuant to Rule 10b5-1. The authorization also reserves the flexibility to suspend or terminate the repurchases at any time based on market conditions or other factors. Following the announcement, trading volume and share price both surged, reflecting investors' immediate reaction to the arrangement.
Galaxy Digital's management believes that the current share price does not fully reflect the company's value, and that the company has available surplus capital. Share buybacks can support earnings per share by reducing the number of outstanding shares, conveying information about the company's balance sheet. In volatile markets, such measures are often interpreted as management's assessment of the stability of the company's fundamentals. Galaxy founder and CEO Mike Novogratz pointed out that while the company continues to grow, it still has the capacity to return capital to shareholders.
Despite a quarterly loss in Q4, the company still achieved a gross profit of $426 million for the full year, demonstrating a robust balance sheet.
Galaxy earlier released its fourth-quarter earnings report, showing a net loss of $482 million, which initially put pressure on its stock price. However, Galaxy emphasized that its adjusted net profit for the full year was $426 million, indicating that its core business continued to perform well. Furthermore, as of the end of the year, Galaxy held approximately $2.6 billion in cash and stablecoins, reflecting liquidity and balance sheet stability. Galaxy's management believes the stock is undervalued and the company has ample disposable surplus capital.
While Galaxy's stock price rose, cryptocurrency and related US stock industries also showed an upward trend that day. Bitcoin (BTC) prices rebounded to around $70,000, Ethereum (ETH) broke through the $2,000 mark within 24 hours, and cryptocurrency exchange Coinbase (COIN) shares rose more than 13%, closing at $165.12. In traditional financial markets, the Dow Jones Industrial Average broke through 50,000 points for the first time that day.
This article, "Galaxy Digital Announces $200 Million Buyback Plan, Stock Price Surges Nearly 18% in One Day," first appeared on ABMedia .
